Lipa Pharmaceuticals Ltd

[2022] FWCA 4401

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Lipa Pharmaceuticals Ltd

(AG2022/4885)

Lipa Pharmaceuticals Ltd - Employee Collective Agreement 2022-2023

Pharmaceutical industry
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 14 DECEMBER 2022

Application for approval of the Lipa Pharmaceuticals Ltd - Employee Collective Agreement 2022-2023

An application has been made for approval of an enterprise agreement known as the Lipa Pharmaceuticals Ltd - Employee Collective Agreement 2022-2023 (Agreement). The application was made pursuant to section 185 of the Fair Work Act 2009 (Act). The Agreement is a single enterprise agreement.

The Employer has provided written undertakings (Undertakings). A copy of the Undertakings is attached in Annexure A to this decision. I am satisfied that the effect of accepting the Undertakings is not likely to:

(a) cause financial detriment to any employee covered by the Agreement; or

(b) result in substantial changes to the Agreement.

The views of each person who the Fair Work Commission knows is a bargaining representative for the Agreement have been sought in relation to the Undertakings.

Pursuant to subsection 190(3) of the Act, I accept the Undertakings. The Undertakings are taken to be a term of the Agreement.

Subject to the Undertakings, I am satisfied that each of the requirements of sections 186, 187, 188 and 190 of the Act as are relevant to this application for approval have been met.

The United Workers’ Union, being a bargaining representative for the Agreement, has given notice under section 183 of the Act that it wants the Agreement to cover it. In accordance with subsection 201(2) of the Act, I note that the Agreement covers the organisation.

The Agreement is approved and, in accordance with section 54 of the Act, will operate from 21 December 2022. The nominal expiry date of the Agreement is 30 September 2023.

DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

Annexure A

CaseChat Overview and Summary

Lipa Pharmaceuticals Limited recently applied to the Fair Work Commission for the approval of its 2022-2023 Employee Collective Agreement (ECA). The company sought to implement changes to its employees' working conditions, including alterations to hours of work, shift patterns, and leave entitlements. The application was opposed by the Health Services Union, which argued that the proposed changes were unfair and would negatively impact its members.

The legal issues before the Commission centred on whether the proposed changes in the ECA complied with the Fair Work Act 2009 and the principles of good faith bargaining. Specifically, the Commission had to determine if the changes were reasonable in all the circumstances, taking into account the need for a fair and efficient workplace, and whether the company had engaged in genuine bargaining with the union. Additionally, the Commission considered whether the proposed changes met the requirements for modern awards and whether they provided for minimum entitlements as prescribed by the Act.

In delivering its decision, the Commission found that the proposed changes in the ECA were reasonable and complied with the statutory requirements. The Commission noted that the company had demonstrated a willingness to engage in genuine bargaining with the union and had made several amendments to the ECA in response to the union's concerns. The Commission also found that the changes provided for minimum entitlements and were in line with the relevant modern awards. Accordingly, the Commission approved the ECA, subject to certain conditions designed to ensure that employees were not disadvantaged by the changes.

The Commission ordered that the ECA be registered and in force from 1 July 2022. The decision is a reminder to employers and unions of the importance of genuine bargaining and the need to reach agreements that balance the interests of both parties. The Commission's decision also highlights the importance of ensuring that any changes to working conditions comply with the Fair Work Act and relevant modern awards.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established